whether Section 112A and Section 112 are optional

[abhishek Mittal]

In case of sale of listed securities when STT is paid on acquisition and transfer(sale) whether its optional for assessee to choose section 112 (having indexation benefit) or section 112A(without indexation) for taxation. section 112A start with 'notwithstanding anything contained in section 112' hence in my view it override the section 112 hence incase of listed securities when STT is paid its mandatorily fall in section 112A and assessee cannot choose section 112 (indexation benefit). Please provide your opinions.

[DR.MARIAPPAN GOVINDARAJAN]

In my view your opinion is correct.

AI Summary

Capital gains taxation for listed securities with STT requires the special regime and bars choice of indexation. The special capital gains regime under Section 112A applies to transfers of listed securities where STT is paid and displaces the general indexed long term capital gains treatment under Section 112, so taxpayers cannot elect the indexed benefit of the general regime for such transactions.